Factors affecting adoption of internet banking services in Kenya Post Office Savings Bank in Nairobi Kenya
Wahome, Mercy Wahu
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The Kenya Post Office Savings Bank has adopted the internet banking as a strategy to fulfill the rapidly changing customers' needs and preferences; competitive forces and product differentiation; enhancement of Customer Relationship Management; and also as a pressure to reduce transactional and operation costs and pass the benefits to customers. However, the expected output of internet banking has had various challenges. The main objective of this research was therefore to evaluate the factors affecting adoption of internet banking services in Kenya Post Office Bank. The target population of the research was the Kenya Post Office Savings Bank. Other specific objectives of the study were; the need to establish whether the ease Of use, perceived risk, and perceived trust are factors that affect the adoption of internet banking; determining the challenges experienced and effect of product involvement in the adoption of internet banking in savings banks. This study utilized the descriptive research design. Two managers that is; Retail Banking and ICT management were purposively selected from each of the34 Post Bank Branches to give 68 respondents in this study. The data was collected using a semi structured questionnaire. The collected data was edited, coded and entered in the Statistical Package for Social Sciences (SPSS) for analysis using descriptive statistics technique. Data presentation was done by the use of charts, graphs, percentages and frequency tables. This study found that most of the Post banks have already adopted internet banking. Most of the Post banks had been using internet banking for between 1 and 5 years. Internet banking is required in boosting delivery of customers' services to a very great extent. Nevertheless, complaints related to internet banking were very often in most of the banks. Majority of the respondents support customer awareness programmes in internet banking in their banks. The factors influencing the adoption of internet banking include ease of use, perceive risk, reliability, perceived creditability and perceived usefulness. Implementation of internet banking services requires competent human resources. The personnel in Post bank who are responsible in maintenance of internet banking systems are fair. This shows that an improvement in the recruitment of personnel was of paramount importance.